Sir,
One more query is required to clarified as to whether sponsorship expenses shown by any firm in their Financial account attracts service tax liability. However, it has been shown in the firm's expense side incurred owing to fees and other relevant expenses for education purpose of children i.e family members admitted in the foreign university. Solicit your necessary valuable guidance on the matter with supportive case laws, circulars, instructions etc. by Board, if any.
Sponsorship Expenses for Overseas Education Subject to Service Tax Under Reverse Charge Mechanism, Says Notification No.30/12-ST. A discussion on whether sponsorship expenses recorded in a financial account attract Service Tax under the Reverse Charge Mechanism (RCM). The query involves expenses related to educational fees for family members studying abroad. One participant clarifies that sponsorship services fall under RCM per Notification No.30/12-ST, making the service receiver liable for the tax. Another participant argues that these expenses are unrelated to business activities and do not involve consideration. The discussion concludes with the affirmation that a private limited company is a body corporate, thus making RCM applicable to sponsorship services. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
